Attachment 4 - Public CommentFrom: Phil Koen
Sent: Monday, June 06, 2022 7:59 AM
To: Rob Rennie <RRennie@losgatosca.gov>; Matthew Hudes <MHudes@losgatosca.gov>; Mary Badame
<MBadame@losgatosca.gov>; Maria Ristow <MRistow@losgatosca.gov>; Marico Sayoc
<MSayoc@losgatosca.gov>
Cc: Laurel Prevetti <LPrevetti@losgatosca.gov>; Arn Andrews <aandrews@losgatosca.gov>; jvannada;
Rick Van Hoesen; David Weissman; Lee Fagot
Subject: Agenda Item #11
Dear Honorable Mayor and Member of Council
The Los Gatos Community Alliance is requesting that Agenda Item #11 be pulled from the consent
calendar to allow for more discussion and increase public transparency.
Discussion Point 1
Schedules C-8 through C-13 (attached) present a detail view of all revenues and expenditures in the
Town’s FY 23 budget. These schedules present both a time trend view of revenues and expenditures as
well as identifying for each year the net increase or decrease in fund balance. The Council Resolution
adopting the operating budget references that the Town Manager submitted to the Finance Committee
a “proposed” operating budget. The total budget now being proposed is materially different than the
one considered by the Finance Committee. For example, the newly proposed FY 23 budget for total
consolidated salary and benefit costs have increased to $35,700,583 which represents a 23% increase
from FY 22 estimated levels (eg $29,019,556). We believe a 23% increase in salary and benefit expense
over prior year’s estimate is important for the Council and residents of the Town be aware of, since this
have never been previously disclosed.
Additionally, the new proposed budget includes the use of an additional $625K in ARPA funds as well as
approximately a $1m draw down of OPEB Trust assets to partially fund FY 23 retiree medical costs. This
was never disclosed prior to the Staff Memo of this Friday.
Request
1.Please update schedules C-8 through C-13 so the Town Council and the public have complete
transparency regarding the detail revenues and expenditure proposed for FY 23 for the General
Fund, Special Revenue Funds, Internal Service Funds, Capital Project Funds, Successor Agency
RDA Fund and Total All Funds. Additionally, these schedules will also make transparent the net
increase or decrease in the funds balance projected for FY 23. Based on our analysis the total
decrease in the general fund balance will be approximately $5,210,496 which is 15% higher than
was reported to the Finance Commission.
2.The schedule of “Total Town Revenues and Expenditures by Fund” attached to the budget
resolution is not sufficiently transparent to allow member of the public to understand the detail
revenues and expenditures and ending fund balances now being proposed. The Town had to
prepared schedules C-8 through C-13 to create the summary schedule attached to the budget
resolution, so very little work should be required to update these schedules. These schedules
should be disclosed prior to the Council taken any action on the FY 23 budget.
ATTACHMENT 4
Discussion Point 2
Agenda Item 11 also includes a resolution to approve commitments of fund Balance under GASB 54.
Among other actions, the proposed resolution establishes an “assigned” General Fund Reserve totaling
$1,611,837 for the “General Fund Reimbursement Revenue (ARPA) Reserve.
Request
1. Under GASB 54 we believe the ARPA Reserve should be a “restricted reserve” because it meets
the definition of a restricted reserve and the use of ARPA funds are restricted in accordance
with Federal Law. The designation of restricted vs. committed vs assigned fund balances are
extremely important and need to be correctly applied. We respectively request that the ARPA
fund reserve comply by GASB 54 and be designated as a “restricted” reserve.
Thank you
Phil Koen
LGCA
C - 8
TOTAL TOWN
REVENUES AND EXPENDITURES
GENERAL FUND
2018/19 2019/20 2020/21 2021/22 2022/23
Actuals Actuals Actuals Estimated Proposed
REVENUES
Property Tax 13,636,099$ 14,454,513$ 15,826,162$ 15,684,964$ 16,551,544$
VLF Backfill 3,685,247 3,875,914 4,052,672 4,229,462 4,356,350
Sales & Use Tax 7,930,021 6,535,034 6,794,218 7,497,873 7,934,189
Measure G - District Sales Tax 228,131 996,391 1,139,386 1,173,733 1,240,755
Franchise Fees 2,475,916 2,495,792 2,499,463 2,435,800 2,493,870
Transient Occupancy Tax 2,692,043 1,869,685 1,044,820 1,400,000 1,642,460
Other Taxes 1,526,894 1,357,080 1,386,943 1,250,000 1,287,500
Licenses & Permits 3,059,894 2,696,457 2,999,711 3,065,997 2,757,029
Intergovernmental 945,191 1,104,075 1,573,697 1,130,125 1,051,814
Town Services 4,648,904 4,447,213 4,835,962 4,259,099 4,235,261
Internal Srvc Reimbursement - - - - -
Fines & Forfeitures 510,266 271,117 103,467 218,120 201,750
Interest 1,682,347 2,266,134 96,061 441,233 432,947
Other Sources 6,093,211 1,381,187 2,217,072 1,140,853 1,760,830
Debt Service Reimbursement 1,909,073 1,905,024 1,908,494 1,899,850 1,893,713
Transfers In 1,578,911 599,669 1,833,218 633,352 538,536
TOTAL REVENUES 52,602,148$ 46,255,285$ 48,311,346$ 46,460,461$ 48,378,548$
EXPENDITURES
Salaries & Benefits 26,803,225$ 28,933,568$ 30,297,504$ 28,866,098$ 33,227,942$
Operating Expenditures 11,955,327 13,397,031 14,276,602 9,849,151 9,318,742
Grants & Awards 248,533 274,249 298,303 800,000 241,000
Fixed Assets 38,307 138,384 2,365 - -
Interest - - 52,011 - -
Internal Service Charges 2,527,470 2,188,211 2,314,305 2,619,672 2,650,173
Capital Projects - - - - -
Capital Acquisitions - - - - -
Debt Service 1,909,073 1,905,024 1,908,494 1,899,850 1,893,713
Transfers Out 2,785,220 8,053,847 4,582,641 3,423,211 3,006,978
TOTAL EXPENDITURES 46,267,155$ 54,890,314$ 53,732,225$ 47,457,982$ 50,338,548$
Net Increase (Decrease)6,334,993 (8,635,029) (5,420,879) (997,521) (1,960,000)
Beginning Fund Balance 31,635,533 37,970,526 29,335,497 23,914,618 22,917,097
Ending Fund Balance*37,970,526$ 29,335,497$ 23,914,618$ 22,917,097$ 20,957,097$
* Year End Fund Balance represents General Fund 111 (Long Term Compensated Absences were accounted in
Fund 961 prior to FY 2018/19, Pension Trust Fund 731 was incorported in FY 2018/19).
C - 9
TOTAL TOWN
REVENUES AND EXPENDITURES
SPECIAL REVENUE FUNDS
2018/19 2019/20 2020/21 2021/22 2022/23
Actuals Actuals Actuals Estimated Proposed
REVENUES
Property Tax -$ 29$ 28$ -$ -$
VLF Backfill - - - - -
Sales & Use Tax - - - - -
Measure G - District Sales Tax
Franchise Fees - - - - -
Transient Occupancy Tax - - - - -
Other Taxes 38,088 38,012 38,566 33,720 33,720
Licenses & Permits 236,451 231,323 231,323 231,323 359,950
Intergovernmental - - 200,911 1,220,000 1,304,696
Town Services 345,280 - - - -
Internal Srvc Reimbursement - - - - -
Fines & Forfeitures - - - - -
Interest 13,685 13,180 9,174 5,310 7,210
Other Sources 216,834 61,809 106,547 70,500 70,000
Debt Service Reimbursement - - - - -
Transfers In - 10,000 - - -
TOTAL REVENUES 850,338$ 354,353$ 586,549$ 1,560,853$ 1,775,576$
EXPENDITURES
Salaries & Benefits 143,545$ 134,311$ 135,625$ 151,804$ 152,207$
Operating Expenditures 578,580 137,628 301,302 1,356,997 1,461,088
Grants & Awards - - - - -
Fixed Assets 21,048 25,079 - - 83,255
Interest - - - - -
Internal Service Charges 2,410 3,019 3,229 3,494 3,709
Capital Projects - - - - -
Capital Acquisitions - - - - -
Debt Service - - - - -
Transfers Out 4,920 4,920 4,920 4,920 4,920
TOTAL EXPENDITURES 750,503$ 304,957$ 445,076$ 1,517,215$ 1,705,179$
Net Increase (Decrease)99,835 49,396 141,473 43,638 70,397
Beginning Fund Balance 972,423 1,072,258 1,121,654 1,263,127 1,306,765
Ending Fund Balance 1,072,258$ 1,121,654$ 1,263,127$ 1,306,765$ 1,377,162$
C - 10
TOTAL TOWN
REVENUES AND EXPENDITURES
INTERNAL SERVICE FUNDS
2018/19 2019/20 2020/21 2021/22 2022/23
Actuals Actuals Actuals Estimated Proposed
REVENUES
Property Tax -$ -$ -$ -$ -$
VLF Backfill - - - - -
Sales & Use Tax - - - - -
Franchise Fees - - - - -
Transient Occupancy Tax - - - - -
Other Taxes 28,390 34,437 67,146 40,000 40,000
Licenses & Permits - - - - -
Intergovernmental - - - 261,382 283,755
Town Services 148,284 115,314 147,121 115,000 85,000
Internal Srvc Reimbursement 3,529,840 3,094,669 3,235,094 3,480,926 3,687,202
Fines & Forfeitures - - - - -
Interest 8 7 5 - -
Other Sources 2,993,443 762,404 654,601 166,965 30,000
CIP Proj Reimbursement - - - - -
Transfers In 450,000 1,061,256 33,000 1,787 -
TOTAL REVENUES 7,149,965$ 5,068,087$ 4,136,967$ 4,066,060$ 4,125,957$
EXPENDITURES
Salaries & Benefits -$ -$ -$ -$ -$
Operating Expenditures 3,544,783 3,779,285 3,803,452 4,841,564 4,915,264
Grants & Awards - - - - -
Fixed Assets 601,961 644,366 307,272 729,416 812,235
Interest - - - - -
Internal Service Charges - - - - -
Capital Projects - - - - -
Capital Acquisitions - - - - -
Debt Service - - - - -
Transfers Out 1,390,375 1,367,797 146,520 94,816 700,000
TOTAL EXPENDITURES 5,537,119$ 5,791,448$ 4,257,244$ 5,665,796$ 6,427,499$
Net Increase (Decrease)1,612,846 (723,361) (120,277) (1,599,736) (2,301,542)
Beginning Fund Balance 6,841,594 8,454,440 7,731,079 7,610,802 6,011,066
Ending Fund Balance 8,454,440$ 7,731,079$ 7,610,802$ 6,011,066$ 3,709,524$
C - 11
TOTAL TOWN
REVENUES AND EXPENDITURES
CAPITAL PROJECT FUNDS
2018/19 2019/20 2020/21 2021/22 2022/23
Actuals Actuals Actuals Estimated Proposed
REVENUES
Property Tax -$ -$ -$ -$ -$
VLF Backfill - - - - -
Sales & Use Tax - - - - -
Franchise Fees - - - - -
Transient Occupancy Tax - - - - -
Other Taxes 28,390 34,437 67,146 34,562 30,000
Licenses & Permits 844,064 1,153,364 1,340,530 764,465 1,074,300
Intergovernmental 1,641,511 3,161,010 1,818,494 3,153,295 7,789,892
Town Services 52,094 223,318 34,417 306,210 -
Internal Srvc Reimbursement - - - - -
Fines & Forfeitures - - - - -
Interest 127,251 158,756 122,705 35,801 36,405
Other Sources 784,085 325,607 2,239,342 1,198,207 116,000
CIP Proj Reimbursement - - - - -
SCC RPTTF Reimbursement - - - - -
Transfers In 2,685,220 8,325,591 3,401,479 3,421,424 3,706,978
TOTAL REVENUES 6,162,615$ 13,382,083$ 9,024,113$ 8,913,964$ 12,753,575$
EXPENDITURES
Salaries & Benefits -$ -$ 31,085$ -$ -$
Operating Expenditures - - 496 - -
Grants & Awards - - - - -
Fixed Assets - - - - -
Interest - - - - -
Internal Service Charges - - - - -
Capital Projects 8,987,510 7,907,339 5,833,758 11,847,615 12,547,670
Capital Acquisitions - - - - -
Debt Service - - - - -
Transfers Out 533,616 569,952 533,616 533,616 533,616
TOTAL EXPENDITURES 9,521,126$ 8,477,291$ 6,398,955$ 12,381,231$ 13,081,286$
Net Increase (Decrease)(3,358,511) 4,904,792 2,625,158 (3,467,267) (327,711)
Beginning Fund Balance 18,488,574 15,130,063 20,034,855 22,660,013 19,192,746
Ending Fund Balance 15,130,063$ 20,034,855$ 22,660,013$ 19,192,746$ 18,865,035$
C - 12
TOTAL TOWN
REVENUES AND EXPENDITURES
SUCCESSOR AGENCY TO THE TOWN OF LOS GATOS RDA
2018/19 2019/20 2020/21 2021/22 2022/23
Actuals Actuals Actuals Estimated Proposed
REVENUES
Property Tax -$ -$ -$ -$ -$
VLF Backfill - - - - -
Sales & Use Tax - - - - -
Franchise Fees - - - - -
Transient Occupancy Tax - - - - -
Other Taxes - - - - -
Licenses & Permits - - - - -
Intergovernmental 1,945,763 1,949,284 1,946,787 2,006,602 1,902,713
Town Services - - - - -
Internal Srvc Reimbursement - - - - -
Fines & Forfeitures - - - - -
Interest 43,706 32,531 4,967 3,500 3,500
Other Sources 11,664 11,664 11,664 - -
CIP Proj Reimbursement 1,909,073 1,905,024 1,908,494 1,999,850 1,893,713
SCC RPTTF Reimbursement - - - - -
Transfers In - - - - -
TOTAL REVENUES 3,910,206$ 3,898,503$ 3,871,912$ 4,009,952$ 3,799,926$
EXPENDITURES
Salaries & Benefits 1,555$ 1,654$ 1,674$ 1,654$ 1,701$
Operating Expenditures 111,712 110,337 106,788 9,820 10,020
Grants & Awards - - - - -
Fixed Assets - - - - -
Interest 823,734 888,703 964,610 1,300,000 1,355,000
Internal Service Charges 9 5 5 5 5
Capital Projects - - - - -
Capital Acquisitions - - - - -
Debt Service 2,936,788 2,862,783 2,792,688 2,499,700 2,433,026
Transfers Out - - - - -
TOTAL EXPENDITURES 3,873,798$ 3,863,482$ 3,865,765$ 3,811,179$ 3,799,752$
Net Increase (Decrease)36,408 35,021 6,147 198,773 174
Beginning Fund Balance 3,803,779 3,840,187 3,875,208 3,881,355 4,080,128
Ending Fund Balance 3,840,187$ 3,875,208$ 3,881,355$ 4,080,128$ 4,080,302$
C - 13
TOTAL TOWN
REVENUES AND EXPENDITURES
TOTAL ALL FUNDS
2018/19 2019/20 2020/21 2021/22 2022/23
Actuals Actuals Actuals Estimated Proposed
REVENUES
Property Tax 13,636,099$ 14,454,542$ 15,826,190$ 15,684,964$ 16,551,544$
VLF Backfill 3,685,247 3,875,914 4,052,672 4,229,462 4,356,350
Sales & Use Tax 7,930,021 6,535,034 6,794,218 7,497,873 7,934,189
Measure G - District Sales Tax 228,131 996,391 1,139,386 1,173,733 1,240,755
Franchise Fees 2,475,916 2,495,792 2,499,463 2,435,800 2,493,870
Transient Occupancy Tax 2,692,043 1,869,685 1,044,820 1,400,000 1,642,460
Other Taxes 1,621,762 1,463,966 1,559,801 1,358,282 1,391,220
Licenses & Permits 4,140,409 4,081,144 4,571,564 4,061,785 4,191,279
Intergovernmental 4,532,465 6,214,369 5,539,889 7,771,404 12,332,870
Town Services 5,194,562 4,785,845 5,017,500 4,680,309 4,320,261
Internal Srvc Reimbursement 3,529,840 3,094,669 3,235,094 3,480,926 3,687,202
Fines & Forfeitures 510,266 271,117 103,467 218,120 201,750
Interest 1,866,997 2,470,608 232,912 485,844 480,062
Other Sources 10,099,237 2,542,671 5,229,226 2,576,525 1,976,830
CIP Proj Reimbursement 3,818,146 3,810,048 3,816,988 3,899,700 3,787,426
SCC RPTTF Reimbursement - - - - -
Transfers In 4,714,131 9,996,516 5,267,697 4,056,563 4,245,514
TOTAL REVENUES 70,675,272$ 68,958,311$ 65,930,887$ 65,011,290$ 70,833,582$
EXPENDITURES
Salaries & Benefits 26,948,325$ 29,069,533$ 30,465,888$ 29,019,556$ 33,381,850$
Operating Expenditures 16,190,402 17,424,281 18,488,640 16,057,532 15,705,114
Grants & Awards 248,533 274,249 298,303 800,000 241,000
Fixed Assets 661,316 807,829 309,637 729,416 895,490
Interest 823,734 888,703 1,016,621 1,300,000 1,355,000
Internal Service Charges 2,529,889 2,191,235 2,317,539 2,623,171 2,653,887
Capital Projects 8,987,510 7,907,339 5,833,758 11,847,615 12,547,670
Capital Acquisitions - - - - -
Debt Service 4,845,861 4,767,807 4,701,182 4,399,550 4,326,739
Transfers Out 4,714,131 9,996,516 5,267,697 4,056,563 4,245,514
TOTAL EXPENDITURES 65,949,701$ 73,327,492$ 68,699,265$ 70,833,403$ 75,352,264$
Net Increase (Decrease)4,725,571 (4,369,181) (2,768,378) (5,822,113) (4,518,682)
Beginning Fund Balance 61,741,905 66,467,476 62,098,295 59,329,917 53,507,804
Ending Fund Balance 66,467,476$ 62,098,295$ 59,329,917$ 53,507,804$ 48,989,122$
Note: Expenditures and Transfers Out may exceed Revenues due to the inclusion of planned and carry-forward
capital projects and payments from General Fund reserves to the Town Pension and OPEB Trusts.